Tasty Fries California Food and Vending Case Resolved; TFRY Regains International and Domestic Distributorship Fees and State of California
BLUE BELL, Pa., July 25 /PRNewswire/ -- Litigation between Tasty Fries, Inc. (OTC Bulletin Board: TFRY - news) and California Food & Vending, Inc. was concluded this past week with what Company officials termed ''a complete resolution of all issues between the two companies in a manner wholly beneficial to Tasty Fries.''
California Food & Vending had contended in a lawsuit filed in Federal District Court in California last year that Tasty Fries had not complied with the parties' prior settlement agreement. Tasty Fries countersued California Food & Vending charging that it had breached its fiduciary responsibility as Tasty Fries' distributor by failing to market and promote the TFRY french fry vending machine and by unsuccessfully attempting to introduce its own machine.
In resolving the case, Tasty Fries regained its State of California distributorship which was owned by California Food & Vending. California is regarded by industry sources as the most potentially lucrative territory in the United States for french fry vending machines with 17% of the anticipated domestic market.
In addition, California Food & Vending completely gave up its rights to share equally in the first $4,000,000 of international and domestic distributorship fees to be paid to Tasty Fries when it commences the commercial delivery of its machines and twenty five percent of all such fees paid to Tasty Fries after the first $4,000,000.
Tasty Fries also received a 10% reduction from $500 per machine to $450 per machine with respect to the royalty to be paid to CFV on the anticipated $9,000 cost of the machines.
''We fought long and hard to enhance the position of our shareholders and protect the integrity of our Company in this lawsuit,'' Company Chairman and Chief Executive Officer Edward C. Kelly stated, adding, ''Our goal was to drastically reduce CFV's involvement in Tasty Fries by aggressively defending ourselves from a frivolous lawsuit while asserting a powerful claim for damages against a defaulting distributor. We were successful.'' In order to achieve its goals, Tasty Fries agreed to forego prosecution of its claims against the California company which, in turn, dismissed its lawsuit.
''The rights to California, the reduction of royalties and the termination of international and domestic distributorship fees, all of which are prospectively worth tens of millions of dollars to Tasty Fries in the future, were regained by our business decision to compensate CFV on a discounted basis of a million dollars and 250,000 shares of our restricted stock,'' said Kelly.
''To California Food & Vending's credit,'' the Chairman stated, ''we were able to structure this sound business deal in part with stock because CFV recognized Tasty Fries' exciting future and wanted to be a part of it.''
Kelly added, ''The upshot of this litigation is that California Food & Vending is now a passive investor in Tasty Fries, and we are aggressively and actively finalizing delivery of our first production units while making arrangements with our distributors to place commercial machines in the field.''
The Tasty Fries(TM) vending machines are revolutionary in design. The multi-patented machines prepare, cook and dispense French fries with the flavor, aroma and texture of freshly cut French fries. Total vend time is less than 90 seconds. The fries are made from top quality Idaho russet potatoes, and cooked in cholesterol-free oil using state-of-the-art robotics technology. The machines will be located worldwide in strategic high-traffic areas like airports, universities, bus and train stations, military bases, theaters, office buildings, schools, and in work and recreational venues.
For more information about this and other related developments, visit the company's web site at www.tastyfries.com or call 1-877-827-8937 for a free investor's package.
Except for any historical information contained herein, the matters discussed in this press release contain ''forward-looking statements'' that involve risks and uncertainties which are described in the Company's SEC reports.
SOURCE: Tasty Fries, Inc. |
